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CoinDesk Consensus

NEAR is NEAR Community Purpose Trust Accelerate the allocation of funds to grassroots projects and take advantage of the innovative legal framework based on the Guernsey Special Purpose Trust. It is a type of trust that separates the legal ownership of assets and the beneficial interest in those assets.

This initiative introduces a unique legal framework for the NEAR ecosystem. It also aims to address the liability and tax issues of DAO participants to help improve the practical implementation of DAO structures.

The first trust property holds 5,662,061 NEAR tokens, worth approximately $11 million at the time of writing.

According to the announcement:

“The NEAR Community Finance Ministry is intended to act as a decentralized finance ministry for the NEAR ecosystem that allocates funds to support various grassroots initiatives. (“DAO”) participants in the hope that it will help bring much-needed clarity. ”

The NEAR Foundation said it “does not control” or owns the NEAR Community Treasury, and said that this initial phase will involve three designated grassroots DAOs within the ecosystem (Developer DAO, Marketing DAO, and Creative DAO.

Guernsey Special Purpose Trust Framework

of Guernsey Special Purpose Trust The (SPT) Framework is a legal and regulatory structure that allows a certain degree of trust to be established in the British Crown Dependency Isle of Guernsey.

SPT is purpose-built and offers flexibility in administration and administration.of Guernsey Financial Services Commission Must oversee the framework and comply with anti-money laundering and anti-terrorist financing laws.

This framework is already used by other players in the crypto industry such as DYDX. implemented the framework In addition, Guernsey SPT offers flexibility in managing and administering trusts, allowing customization to meet the specific needs of cryptographic projects.

Also, the framework provides Legal and regulatory certainty, is overseen by the Guernsey Financial Services Commission and complies with anti-money laundering and terrorist financing laws. The Guernsey SPT structure also further protects the project and its stakeholders by limiting fiduciary liability and appointing independent advisors.

NEAR Community Purpose Trust

The trust acts as a written trust settlement between the trustee and the executor. Accordingly, the Trustees may use assets held within the NEAR Community Treasury for any activity consistent with the purposes of the Trust, but only with the prior approval of the NEAR Community.

Enforcers can “enforce” trust and remove trustees under certain conditions. The first enforcer is Francesco Paolo Piatti, a lawyer and associate professor of blockchain regulation at the University of Bocconi in Italy.

The councilor selection process is reportedly a collaborative effort between the Governance Working Group (GWG), the NEAR Foundation, and the broader NEAR community. Criteria for selecting Trustees included “a clear commitment to NEAR, NEAR-based leadership, attendance at NEAR-based events, involvement in major NEAR projects in real life and society, demonstrated professionalism and Administrative capacity, and not a U.S. citizen or resident” were included. Due to legal restrictions. ”

Once the NEAR community initiates this on-chain voting mechanism, the limited authority of the Governing Board will be removed. The community can then submit and pass funding proposals, directing the Trustees to:

  • Fulfill a grant request
  • Add core objectives and add/remove auxiliary objectives
  • Appointment/Removal of Trustee and/or Enforcer
  • Change the governing law of NEAR Community Treasury.

Given the lack of clarity in the US, capitalizing in trusts under clear oversight while allowing crypto projects to participate could be a core part of Guernsey SPT’s appeal. .

By Jules

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